Slide 1: Third Quarter 2023 Financial Results
THIRD QUARTER 2023 FINANCIAL RESULTS November 7, 2023
Slide 2: Forward-Looking Statements – Disclaimer
FORWARD-LOOKING STATEMENTS – DISCLAIMER This presentation contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements include all statements that are not historical statements of fact and those regarding Crane NXT, Co’s (the “Company”) intent, be
Slide 3: Strong Third Quarter Results, Narrowing FY EPS Guidance
STRONG THIRD QUARTER RESULTS, NARROWING FY EPS GUIDANCE $353M ~4% • Expanded adj. operating margin by +10 bps Sales Core Sales Growth year-over-year • Crane Currency exceeded expectations with ~12% core sales growth, ~28% adjusted $103M $1.09 operating margin, and ~80% backlog Adj. EBITDA* Adj. EPS*
Slide 4: Q3 2023 Earnings Summary and Highlights
Q3 2023 EARNINGS SUMMARY AND HIGHLIGHTS Q3 2023 Key Messages: $ Millions, except per-share amounts As-Reported* Adjusted* Sales $353 $353 • Core sales growth of ~4% Operating Profit $80 $92 • Adjusted EBITDA margin growth of Operating Profit Margin 22.6% 26.0% +20 bps over prior year Net Income (GAA
Slide 5: Crane Payment Innovations (CPI)
CRANE PAYMENT INNOVATIONS (CPI) GAAP Metrics Adjusted Metrics (Non-GAAP)* $ Millions Q3 2023 Q3 2022 Change Q3 2023 Q3 2022 Change Sales $222 $221 +0% $222 $221 +0% Segment Profit $60 $55 +8% $65 $61 +7% Segment Margin 26.9% 25.0% +190 bps 29.4% 27.5% +190 bps Backlog $232 $374 (38%) $232 $374 (38%)
Slide 6: Crane Currency
CRANE CURRENCY GAAP Metrics Adjusted Metrics (Non-GAAP)* $ Millions Q3 2023 Q3 2022 Change Q3 2023 Q3 2022 Change Sales $131 $114 +15% $131 $114 +15% Segment Profit $33 $32 +1% $36 $36 +1% Segment Margin 25.0% 28.3% -330 bps 27.6% 31.4% -380 bps Backlog $223 $126 +77% $223 $126 +77% Key Messages: Q3
Slide 7: Strong Balance Sheet and Capital Structure
STRONG BALANCE SHEET AND CAPITAL STRUCTURE $ Millions Q3 2023 Net debt to Adj. EBITDA* of ~1.3x** Cash Provided from Operating Activities 102.8 Capital Expenditures (7.6) $725M $729M Free Cash Flow* 95.2 $175M Term Loan Adjusted Free Cash Flow* 97.5 Effective (GAAP) Tax Rate 23.5% $500M Undrawn Revo
Slide 8: Updated 2023 Guidance
UPDATED 2023 GUIDANCE Prior Guidance Revised Guidance Aug 7, 2023 Nov 6, 2023 Adjusted EPS* $3.85-$4.15 $4.00-$4.15 Core Sales Growth +3% to +5% +3% to +5% • Core sales growth expected to be in line Adjusted Segment Margin 27%+ 27%+ with full year guidance Corporate Expense ~$50M ~$50M • Adj. segmen
Slide 9: Key Messages from Q3 2023
KEY MESSAGES FROM Q3 2023 • Strong operating performance: Adj. EPS $1.09, core sales growth ~4%, Adj. operating margin ~26% • Raising low end of full year Adjusted EPS guidance range; narrowed range of ~$4.00-$4.15 • Repaid $125M of term loan, reducing net leverage to ~1.3x • Strong balance sheet fo
Slide 10: Crane NXT Provides Trusted Technology Solutions to Secure, Detect, and Authenticate
CRANE NXT PROVIDES TRUSTED TECHNOLOGY SOLUTIONS TO SECURE, DETECT, AND AUTHENTICATE WHAT MATTERS MOST Secure Detect Industry-leading materials technology to protect currency and high-value products Advanced detection systems and software to authenticate and manage transactions Authenticate $1.4B ~40
Slide 11: Crane NXT – A Premier Industrial Technology Company
CRANE NXT – A PREMIER INDUSTRIAL TECHNOLOGY COMPANY 5-YEAR GOALS • Leading provider of trusted technology solutions to secure, detect, and authenticate our customer’s most valuable assets ~$3B Sales • Durable, resilient business growing at ~MSD with best-in-class margins and free cash flow conversio
Slide 12: Q&A
Q&A CRANE
Slide 13: Appendix
APPENDIX CRANE NO T
Slide 14: Non-GAAP Explanation
NON-GAAP EXPLANATION Crane NXT, Co. reports its financial results in accordance with U.S. generally accepted accounting principles (“GAAP”). This press release includes certain non-GAAP financial measures, including Adjusted operating profit, Adjusted operating margin, Adjusted EPS, free cash flow a
Slide 15: Non-GAAP Explanation
NON-GAAP EXPLANATION The Company's management believes that each of the following non-GAAP measures provides useful information to investors regarding the Company’s financial conditions and operations: • "Adjusted operating profit" and "Adjusted operating margin" add back to operating profit items w
Slide 16: Non-GAAP Financial Measures for Crane NXT, Co.
NON-GAAP FINANCIAL MEASURES FOR CRANE NXT, CO. Non-GAAP Financial Measures (unaudited, in millions except per share data) Totals may not sum due to rounding 1 Stock-based compensation adjustment resulting from the Separation. 2 Represents transaction related expenses associated with the Separation.
Slide 17: Non-GAAP Financial Measures for Crane NXT, Co.
NON-GAAP FINANCIAL MEASURES FOR CRANE NXT, CO. Non-GAAP Financial Measures by Segment (unaudited, in millions) 17
Slide 18: Non-GAAP Financial Measures for Crane NXT, Co.
NON-GAAP FINANCIAL MEASURES FOR CRANE NXT, CO. Free Cash Flow (unaudited, in millions) 18
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